Mobile Phone Firms Compromise With Germany Over VAT Refunds
Several major mobile phone companies may not now need to sue Germany for billions of euros
in VAT refunds connected to the purchase of third generation licences, according
to a report in the German daily, Handelsblatt.
According to the report, which quoted an unnamed company source, the firms,
which include Vodafone, T-Mobile and O2, have been engaged in “constructive
talks” with the German authorities, which could lead to a compromise settlement. "If the verbal assurances we were given are fixed in writing then we will
not sue," the source revealed. Mobile phone firms claim that the sums they paid to governments to acquire
3G licences included VAT, and therefore they are entitled to a tax refund. Under the compromise deal proposed by the German authorities, the validity
of the VAT claims would be extended until the European Court of Justice decides
whether the claims are legitimate. The German government received some EUR50 billion through the sale of 3G licences
in 2000. A ruling is expected within 18 months. .
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